Practical steps to reduce retail leasing disputes
Retail leasing disputes remain common as landlords and tenants in Victoria continue to feel the impacts of recent years (rising costs, tighter margins and changing trade conditions). Disagreements over leases and rental arrangements can escalate quickly, but smart preparation and open communication can keep disputes out of lengthy mediation and legal battles.
Here are our top tips to reduce these disputes…
Get the right people involved
Disputes are harder to resolve if decision-makers or key parties, like managing agents, aren’t part of the mediation. Make sure everyone relevant to the lease and its history is included in discussions from the outset. This can avoid misunderstandings and speed up resolutions.
Be properly prepared
Parties often attend mediation without a clear understanding of what’s at stake. Whether it’s a rent relief calculation, maintenance dispute or compensation claim, come prepared with all the relevant numbers, supporting documents and a realistic sense of what outcome is practical.
If you share all the information upfront, including actual costs or financial hardship, you can save time and avoid unnecessary escalation.
Check recoverability early
For landlords, it’s important to assess the tenant’s financial position early on. If you know ahead of time that a tenant can’t pay, it’ll avoid wasted effort and expense.
Tenants claiming financial hardship or insolvency should be ready to provide supporting evidence before mediation.
Act quickly
Delays make disputes worse by increasing frustration on both sides. With wait times for formal mediation growing, consider arranging private mediation to address issues sooner.
Adopt a problem-solving approach
Mediation works best when both parties are willing to share information and look for mutually acceptable solutions, rather than assign blame. Offering or requesting evidence that supports claims (like building quotes or proof of hardship) is more likely to get a fair outcome.
Communicate openly
Many disputes arise from breakdowns in communication. Stay engaged, be honest about challenges, and remain open to compromise. Sometimes, a simple conversation and early exchange of information can resolve an issue before formal mediation is even needed.
Retail leasing disputes are challenging for everyone involved. By involving the right people, preparing thoroughly and acting promptly, you can minimise the time, cost and disruption these disputes cause, and find a workable solution sooner.
If you’re facing a leasing dispute, please get in touch with your Aintree Group Legal advisor for individual advice.
This is general advice only and has not been prepared with your situation and needs in mind. For individual and personalised advice, we highly recommend that you seek out proper professional advice from your accountant and lawyer.
